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Spatial competition in a two dimensional market

✍ Scribed by Paul Jonas

Publisher: Springer
Year: 1968
Tongue: English
Weight: 656 KB
Volume: 2
Category: Article
ISSN: 0570-1864
DOI: 10.1007/bf02096174

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In this paper, a spatial model is used to endogenously determine product locations and prices when consumers have an elastic demand with a finite reservation price. I show under which condition a two-stage Bertrand-Nash equilibrium yields maximal product differentiation with full market covering. Ad